Happy Forgings, a leading Indian manufacturer specializing in heavy forgings and high-precision machined components, is set to launch its Initial Public Offering (IPO) with shares priced in the range of Rs 808-850 per share. The lot size is fixed at 17 equity shares, and the IPO will be open for subscription from December 19 to December 21. The Anchor book for the issue opens today, December 18.
The Grey Market Premium (GMP) for Happy Forgings IPO is currently at Rs 411 per share, reflecting a robust demand. This premium represents a substantial 50.59% increase over the issue price of Rs 1,280 apiece in the grey market.
Proceeds from the IPO will be utilized for the purchase of equipment, plant and machinery, prepayment of certain outstanding borrowings, and general corporate purposes.
Happy Forgings, incorporated in July 1979, manufactures, designs, and tests various products including crankshafts, front axle carriers, steering knuckles, differential housings, transmission parts, pinion shafts, suspension products, and valve bodies for diverse industries and customers.
With three manufacturing facilities in Ludhiana, Punjab (two in Kanganwal and one in Dugri), the company has a global footprint, having served customers in Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the United Kingdom, and the United States of America. Notable clients include AAM India, Ashok Leyland, Bonfiglioli Transmissions, Dana India, IBCC Industries, International Tractors, JCB India, Mahindra & Mahindra, SML ISUZU, Swaraj Engines, and others.
JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors are the book running lead managers for the IPO, with Link Intime India Private Ltd serving as the registrar. The listing of Happy Forgings shares on both BSE and NSE is scheduled for December 27, Wednesday.
“HFL has transformed from being a forging led player to a leading manufacturer of machined components in India and consistently grew its product basket with a strong focus on manufacturing margin accretive value-added products to achieve higher margins improving its share. With a high entry barriers business, lengthy customer and product approval process, its in-house design capabilities & fungible production lines have led to a diverse product offering and continuous value addition to its long standing relationships with customers across industries and countries would drive growth for the company. HFL will continue to grow better than the industry able to diversify its product basket, with a focus on capital efficiency building healthy financial metrics. Therefore we recommend a SUBSCRIBE to the issue,” said Reliance Research.